1. What is the breakeven point for next year?

2. What is next years projected after-tax income?

3. Choose a target after-tax income. Estimate the number of units that must be sold to reach this target.

Ibrahim Corporation manufactures product A. Following is information for next year's operations, based on an estimated volume of 40,000 units: Expected revenues $2,000,000 Unit costs: Direct materials Direct labor Variable overhead Fixed manufacturing overhead Total Other fixed costs: Administration, marketing, etc. $230,000 30% Income tax rate